After very low volumes of the holiday period today there was a strong push to new highs with volume returning. Will be looking for a move to the supply line of the upward stride.
Comment:
@cgd, The target indicated below was made by assuming that the markup will reach the upper trend line of the channel. Using Point&Figure targets we get the following. For the initial accumulation range, we get a count of between R1160 and R1280. The most recent swing gives us a count to between R1175 and R1220.
Comment:
Price has overthrown the overbought line of the upward stride. We see volume coming in indicating supply increasing. Today's action potentially looks climatic and we will look for an automatic reaction to form.
Comment:
The Buying Climax (BC) has completed with a throw over of the overbought line and a Change of Character (CoC) bar which is a larger down bar than any other in the upward move. With this Automatic Reaction (AR) we have likely formed the boundaries of a trading range that should follow.
Comment:
Looking for a test of the BC to confirm the TR.
Comment:
The Trading range has set up with a BC, AR and ST. Expecting some ranging action in the new TR.
